Why Shrinking Social Supports Backfires on America
For decades, Republican lawmakers have leaned on wealthy donors and powerful conservative groups to fund their campaigns. In return, those donors have pushed a simple wish list: tax cuts for corporations and high-income households, along with a smaller government that spends less on programs like food assistance, Medicaid, and affordable housing.
At first glance, these priorities might sound like a way to reward hard work and encourage growth. But the truth is that cutting social supports does not strengthen America — it weakens it. Again and again, the evidence shows that shrinking these programs backfires, hurting working families and dragging down the economy as a whole.
For decades, Republican lawmakers have leaned on wealthy donors and powerful conservative groups to fund their campaigns. In return, those donors have pushed a simple wish list: tax cuts for corporations and high-income households, along with a smaller government that spends less on programs like food assistance, Medicaid, and affordable housing.
At first glance, these priorities might sound like a way to reward hard work and encourage growth. But the truth is that cutting social supports does not strengthen America — it weakens it. Again and again, the evidence shows that shrinking these programs backfires, hurting working families and dragging down the economy as a whole.
Who Wins, and Who Loses?
The data is clear: the wealthiest 1% of Americans have captured over 38% of all new global wealth in recent years (Oxfam, 2023). Meanwhile, more than 40 million Americans rely on SNAP (food stamps), and about 85 million people use Medicaid — programs that repeatedly face funding cuts from lawmakers eager to satisfy wealthy donors.
When tax breaks are handed out at the top, the benefits mostly go to shareholders and corporate executives rather than working families. For example, after the 2017 tax law reduced corporate tax rates, large U.S. companies spent over $800 billion on stock buybacks in just two years — far more than they invested in worker raises or new hiring.
Shrinking These Supports Hurts the Economy
When vital public programs are cut, it becomes harder for working-class and middle-class families to stay afloat. Food assistance helps people keep groceries on the table. Medicaid ensures children and parents can see a doctor. Housing supports help prevent homelessness and keep communities stable.
Research consistently shows these investments pay off. Every dollar spent on SNAP generates about $1.50 in local economic activity because families spend that money right away at neighborhood grocery stores and small businesses (USDA, 2022). Medicaid protects hospitals from having to absorb unpaid medical bills, saving the broader health system billions of dollars each year.
Studies from Moody’s Analytics have found that benefits aimed at lower-income families deliver some of the highest economic returns of any policy — up to $1.70 for each dollar of unemployment insurance spending, compared to as little as 35 cents per dollar for corporate tax cuts. That’s because people with low or moderate incomes tend to spend rather than save, which supports local businesses, keeps workers employed, and stabilizes local tax revenues.
When supports are cut, families are forced to skip meals, delay medical care, or fall behind on rent. That pain doesn’t stay in one household — it spreads through entire communities, weakening growth and opportunity for everyone.
A Democracy Problem, Too
This isn’t just about dollars and cents. When politicians depend on wealthy donors to stay in office, they put those donors’ demands first — even if the broader public disagrees.
That is not how democracy is supposed to work. A system where lawmakers listen only to their wealthiest backers, while ignoring working families, leaves most Americans feeling voiceless and frustrated. It also feeds the kind of division and resentment that makes solving real problems even harder.
What Happens Next?
If these priorities continue — more tax cuts for the top, less support for everyone else — the country will grow even more unequal and more divided. And that is a dangerous path. History shows that societies with extreme wealth gaps are more vulnerable to instability, economic crises, and political unrest.
Instead, we could invest in programs that help people climb the ladder, stay healthy, and build secure lives. Those investments don’t just lift individuals; they strengthen the economy and the nation as a whole.
To understand how these priorities connect to current legislation, take a look at Why Are Republicans Pushing an Unpopular Bill? Here’s What You Should Know. That piece breaks down the political pressures and strategies behind recent proposals — and how they align with long-standing donor-driven goals.